Assembly Bill A737

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   737

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 7, 2015
                               ___________

Introduced  by M. of A. STECK -- read once and referred to the Committee
  on Corporations, Authorities and Commissions

AN ACT to amend the business corporation law, in relation to the  appli-
  cability of provisions relating to liability of shareholders for wages
  due  to  laborers,  servants  or  employees for certain foreign corpo-
  rations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  (a) of section 630 of the business corporation
law, as amended by chapter 212 of the laws of 1984, is amended  to  read
as follows:
  (a) The  ten  largest shareholders, as determined by the fair value of
their beneficial interest as of the beginning of the period during which
the unpaid services referred to in this section are performed, of  every
DOMESTIC  corporation  (other  than  an investment company registered as
such under an act  of  congress  entitled  "Investment  Company  Act  of
1940"),  OR  OF  ANY  FOREIGN CORPORATION, WHEN THE UNPAID SERVICES WERE
PERFORMED IN THE STATE, no shares of which  are  listed  on  a  national
securities exchange or regularly quoted in an over-the-counter market by
one  or  more  members of a national or an affiliated securities associ-
ation, shall jointly and severally be personally liable for  all  debts,
wages  or  salaries  due  and  owing to any of its laborers, servants or
employees other than contractors, for services  performed  by  them  for
such  corporation. Before such laborer, servant or employee shall charge
such shareholder for such services, he shall give notice in  writing  to
such  shareholder that he intends to hold him liable under this section.
Such notice shall be given within one  hundred  and  eighty  days  after
termination  of  such  services, except that if, within such period, the
laborer, servant or employee demands an examination  of  the  record  of
shareholders  under  paragraph  (b)  of  section 624 (Books and records;
right of inspection, prima facie evidence) OF THIS ARTICLE, such  notice

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04400-01-5
              

A. 737                              2

may  be  given within sixty days after he has been given the opportunity
to examine the record of  shareholders.    An  action  to  enforce  such
liability  shall  be commenced within ninety days after the return of an
execution  unsatisfied against the corporation upon a judgment recovered
against it for such services.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.